BILL ANALYSIS Ó AB 1448 Page 1 Date of Hearing: May 5, 2015 ASSEMBLY COMMITTEE ON JUDICIARY Mark Stone, Chair AB 1448 (Lopez) - As Amended April 23, 2015 As Proposed to be Amended SUBJECT: clotheslines and drying racks: real property restrictions KEY ISSUES: 1)Should a landlord be required to permit a tenant to have an energy-saving clothesline or drying rack in the tenant's private area, so long as it does not interfere with property maintenance or pose a safety threat? 2)Should a provisIon in the governing documents of a homeowners' association be unenforceable if it unreasonably restricts an owner from using a backyard clothesline or drying rack? SYNOPSIS This modest energy conservation measure will make it easier for renters and owners in a homeowners' association (HOA) to use an AB 1448 Page 2 outdoor clothesline or drying rack in order to conserve energy and cut utility costs. The bill has ample protections for landlords and HOAs. First, a landlord must approve the tenant's choice of clothesline or drying rack and may impose reasonable restrictions as to time and place. Second, as for HOA owners, the bill makes unenforceable any provisions in the governing documents that unreasonably impairs the ability of the owner to use a backyard clothesline or drying rack. The bill specifies, however, that the HOA may still impose reasonable restrictions on the use of backyard clotheslines and drying racks. Notwithstanding the author's effort to clarify the right of landlords and HOAs to impose reasonable restrictions on the use of these simple energy-saving devices, the bill is opposed by landlord and HOA groups who fear that clotheslines will create an eyesore and may damage property. The author has graciously agreed to amend the bill further to clarify that a tenant cannot affix a clothesline to a building exterior without the landlord's prior approval, even though this was probably already covered under existing language. With these amendments, the primary basis for continuing opposition appears to be aesthetics. This bill is sponsored by The Utility Reform Network (TURN) and supported by Conference of California Bar Associations, the Consumer Federation of California, the California State Grange, and the Sebastopol Grange. The author will take amendments in this Committee that are reflected in the analysis. SUMMARY: Permits tenants, as well as owners in a homeowners association, to use reasonable clotheslines and drying racks, as specified. Specifically, this bill: 1)Requires a landlord to permit a tenant to use a clothesline or drying rack approved by the landlord in the tenant's private area, subject to reasonable time and location restrictions, if the following conditions are met: AB 1448 Page 3 a) The clothesline or drying rack shall not interfere with the maintenance of the rental property. b) The clothesline or drying rack shall not create a health or safety hazard, block doorways, or interfere with walkways or utility service equipment. c) The tenant seeks the landlord's prior approval before affixing a clothesline to a building. 2)Makes void and unenforceable any provision in HOA governing documents that effectively prohibits or unreasonably restricts a homeowner's ability to use a backyard clothesline or drying rack. Specifies that nothing in this provision shall prevent the HOA from establishing reasonable rules and restrictions governing clotheslines or drying racks. EXISTING LAW: 1)Regulates the terms and conditions of residential tenancies, and generally requires landlords to keep the rental units in a condition fit for occupancy. (Civil Code Section 1940 et seq.) 2)Creates an implied covenant of quiet enjoyment in every lease, requiring that the tenant shall not be disturbed in his or her possession by the landlord. (Civil Code Section 1927; Pierce v. Nash (1954) 126 Cal.App.2d 606, 612.) 3)Regulates the purposes for which a renter's security deposit may be used, including, but not limited to, compensating the landlord for default on payment of rent, cleaning or repairing rented property, exclusive of normal wear and tear, or remedying future obligations under the rental agreement, as AB 1448 Page 4 specified. (Code of Civil Procedure Section 1950.5 (a)-(e).) 4)Permits the governing board of a HOA to adopt operating rules that apply generally to the management and operation of the common interest development or the conduct of the business and affairs of HOA, provided that the rule is within the authority of the board to make, does not conflict with the association's articles, bylaws, or governing law, and is reasonable. (Civil Code Sections 4340 and 4350.) 5)Provides specified limits to the authority of HOA governing documents to regulate the use of a member's separate interest, including provisions relating to the display of signs, the installation of solar energy systems, and modification to property to accommodate a disability. (Civil Code Section 4700 et seq.) FISCAL EFFECT: As currently in print this bill is keyed non-fiscal. COMMENTS: This modest energy conservation and freedom of choice measure will make it easier for renters and owners in a homeowners' association (HOA) to make use of an outdoor clothesline or drying rack in order to conserve energy and cut utility costs. The bill has ample protections for landlords and HOAs. First, a landlord must approve the tenant's choice of clothesline or drying rack and may impose reasonable restrictions as to time and location. As for owners in an HOA, the bill provides that any provision in the governing documents that unreasonably prohibits or impairs the ability of the owner to use a backyard clothesline or drying rack is unenforceable. However, the bill permits the HOA to impose reasonable restrictions on the use of backyard clotheslines and drying racks. The bill also makes it clear that the HOA owner's right to use a clothesline or drying rack is restricted to backyard AB 1448 Page 5 space that is for the exclusive use of the owner; there would be no right under this bill to use a clothesline or drying rack in any HOA common area. Opponents Claims Seem Overstated Given Requirement for Landlord Approval: Many of the concerns raised by the many regional apartment associations opposed to this bill appear to be already addressed by the requirement that any clothesline or drying rack must be "approved by the landlord" and subject to "reasonable time and location restrictions." Opponents fear, for example, that tenants may attach clotheslines to buildings by drilling holes or by other means that might damage the property. Most landlords, the opponents contend, prefer free-standing clotheslines or drying racks to ones that are semi-permanently attached. But if the landlord must approve the clothesline, presumably this means that the landlord could choose to approve only freestanding clotheslines that do not entail drilling holes into a building. If the tenant drilled holes without the landlord's permission, existing law would allow the landlord to deduct money from the security deposit to patch them up. As noted below, to address this concern the author as agreed to an amendment making explicit that a clothesline cannot be affixed to a building exterior without the landlord's prior approval. Requiring prior approval to affix the clothesline to a building will not likely remove the opposition, however. For example, opponents claim that they would support freestanding clotheslines, but this claim does not square with other objections raised. For example, opponents repeatedly proclaim that hanging clothes (and especially underwear, it seems) is aesthetically displeasing to other tenants and the public. But if this is so, it is not clear why those clothes would be more aesthetically pleasing on a freestanding clothesline than on an attached one. Other opposition arguments also appear inconsistent. For example, opponents contend at some points that tenants can already use clotheslines and drying racks inside of their apartments. Putting aside the obvious drawback AB 1448 Page 6 that refreshing sunlight and breeze cannot reach clothes hanging inside, the opponents elsewhere express the fear that tenants will hang clothes over areas where dripping water will damage property. But it would seem that dripping water inside the building would cause more property damage than dripping water outside. Moreover, it is difficult to imagine how clothes dripping in an outdoor location would cause any more damage than rain. If there is such an outdoor location that cannot be reached by rain and where dripping water would cause property damage, the bill addresses that problem by allowing the landlord to impose reasonable restrictions as to the time and location of the landlord-approved clothesline. Necessity for Legislation. The California Apartment Association (CAA) shares many of the concerns of the several regional apartment associations, but it asks a more fundamental question: Why is this bill necessary? CAA claims that most tenants can already use clotheslines and drying racks and regularly work out the details and permissions with landlords. No doubt most landlords and tenants settle the issue reasonably and without incident, but according to the author and supporters many landlords and HOAs in California do, in fact, prohibit clotheslines. The Committee does not have any evidence on whether such restrictions are increasing or decreasing, but by the opposition's own reckoning a fair number of landlords and HOAs must prohibit outdoor clotheslines and drying racks, otherwise the bill would not be necessary. For tenants and owners dealing with these landlords and HOAs, this bill may permit them to have reasonably placed clotheslines and drying racks. Tenant Property Rights and the "Bundle of Sticks." One of the opposition letters invokes the old law-school adage that property rights are best thought of as a "bundle of sticks." The letter contends that one of the "sticks" enjoyed by the property owner is the right to "control" the property. Yet the idea of property as a "bundle of sticks" actually supports this AB 1448 Page 7 bill. According to the classic formulation, the "bundle of sticks" that make up property rights include the right to possess; the right to exclude; the right to use or enjoy; and the right to transfer or convey. [Jesse Dukeminier & James Krier, Property 93 (5th ed. 2002).] The point of the "bundle of sticks" analogy is that a property interest does not necessarily entail all of those rights; the rights associated with property, that is, are severable. For example, a person with a life estate has a right to possess, exclude, and use the property, but lacks the right to transfer. Though often forgotten by those who invoke sanctity of property rights, a tenant enjoys property rights every bit as worthy of protection as the property rights of a title holder. While the tenancy lasts, the tenant has the "right to possess" stick and the "right to use" stick. The tenant even has the "right to exclude" stick as to everyone but the landlord, and under California law the tenant may even exclude the landlord subject to certain exceptions. (See e.g. Civil Code Section 1927; Pierce v. Nash (1954) 126 Cal.App.2d 606, 612.) Like the holder of a life estate the tenant lacks the right to transfer. Also like the holder of a life estate, the tenant has an obligation not to "waste" (or injure) the property, which is why California landlords are entitled to require a security deposit and withhold parts or all of it to cover cleaning and damage costs. (Code of Civil Procedure Section 1950.5 (a)-(e).) When a landlord leases property to a tenant, he or she conveys certain "sticks" in the property-rights bundle while retaining others. It is not unreasonable to assume that the tenant's right to use and enjoy the property includes the right to reap the many personal and environmental benefits of a clothesline. Indeed, the tenant might even find the clothesline aesthetically pleasing. Neighbors and members of the public might find the clothesline aesthetically displeasing, but the same would be true of a clothesline installed by a fee simple owner; yet no one would question the fee simple owner's right to install one. AB 1448 Page 8 Tenant Provisions Could Be Much Stronger. Despite opposition claims that this bill takes too much control away from the landlord, the bill arguably cedes too much to the landlord. The bill only permits the tenant to use a clothesline or drying rack that is "approved by the landlord." This could undermine the purpose of the bill, as a landlord could simply refuse every reasonable request by the tenant. The eminently reasonable purpose of the bill might be better served by recasting that provision. That is, rather than requiring the clothesline or drying rack to be approved by the landlord, it would be more consistent with the purpose of the bill to provide that the landlord shall not "unreasonably disapprove" of the tenant's use of a clothesline or drying rack so long as it meets all of the bill's other considerable restrictions. ARGUMENTS IN SUPPORT: The bill's sponsor, The Utility Reform Network (TURN), argues that AB 1448 will "encourage and support low-cost, low-tech solutions for the average citizen to keep and maintain manageable utility bills." According to TURN, there is "a growing movement to allow citizens the personal freedom of hang-drying their clothing, harnessing the power of the sun." TURN reports that six states - Florida, Maine, Utah, Vermont, Colorado, and Hawaii - have adopted statutes that override contracts or covenants that prohibit the use of clotheslines. Federal studies, according to TURN, show that using clothesline instead of electric dryers promotes energy conservation and significantly reduces the amount of carbon dioxide emitted into the atmosphere. Despite the obvious potential for monetary savings and energy conservation, TURN contends that "in many locations across California, Homeowners' Associations, Condo Associations, and Apartment Associations deny a person's right to utilize the power of the sun" by prohibiting the use of clotheslines and drying racks. The Conference of California Bar Associations (CCBA) supports this bill for similar reasons, claiming that "studies have shown that mechanical clothes dryers often use up to 10% of a AB 1448 Page 9 household's energy consumption. However, while existing law recognizes the value of easements for energy conservation, it fails to include passive solar devices, such as clotheslines, which could go a long way towards reducing unnecessary energy consumption." AB 1448 is supported by the Consumer Federation of California, the California State Grange, and the Sebastopol Grange for substantially the same reasons as those cited by TURN and CCBA. All supporters add that the bill appropriately recognizes the right of a landlord or a homeowners' association to impose reasonable restrictions, so long as clotheslines and drying racks are not unreasonably prohibited altogether. ARGUMENTS IN OPPOSITION: Opponents represent statewide and regional associations of apartment owners and HOAs. They argue that AB 1448 will interfere with the management and well-established rules of apartment complexes and community interest developments. If enacted, they claim that AB 1448 would "likely become the basis for new disputes as the bill's right to hang laundry clashes with a property owner's concern over the maintaining [of] the appearance of the property." Opponents claim that there is nothing in this bill to prevent persons from hanging laundry over balcony railings, affixing clotheslines to building exteriors in ways that could damage the property, or hanging lines or racks over areas that could be harmed by dripping water. However, for many opponents, a primary objection appears to be aesthetics: "hanging clothes and underwear are aesthetically displeasing to other tenants and the public" and "property overrun by drying clothes is an eyesore and a real nuisance to the community." As a result, some of the opponents conclude, "property values will be negatively impacted, and tenants will be able to request a diminution of value rent decrease from their local rent board." The California Apartment Association (CAA) adds that a statute on this topic is unnecessary. CAA claims that nothing in current law would prevent a tenant from using freestanding (unattached) clotheslines or drying racks and that "typically, a AB 1448 Page 10 landlord and tenant are able to work out these sorts of issues so long as free standing racks are discrete and not visible to neighbors." The Educational Community of Homeowners (ECHO), representing community associations, opposes this bill unless amended, though the proposed author amendments may address many of these concerns. For example, ECHO argues that the term "personal energy conservation purposes" is unclear, and that therefore the HOA provision should only apply to "clotheslines and drying racks," as does the provision on rental property. As noted, the author has already agreed to take such an amendment in this Committee. Proposed Author Amendments: Opponents contend, among other things, that the use of the term "personal energy conservation purposes" in the provision dealing with the HOAs could be broadly construed to include things other than clotheslines and drying racks, such as large solar panels. This is not the author's intent. Therefore, the author will amend the HOA provision to mirror the language of the rental provision so that it refers only to "a clothesline or drying rack." The amendments also clarify that a tenant may not affix a clothesline to a building without a landlord's prior permission. Finally, the amendments make clarifying organizational changes. Specifically, the author will take the following amendments: - On page 2 line 13 after "approved" insert: , and subject to reasonable time or location restrictions, - On page 2 after line 19 insert: (3) The tenant seeks the landlord's prior consent before affixing a clothesline to a building. AB 1448 Page 11 - On page 2 delete lines 20-21 - On page 3 line 7 delete "the use of a homeowner's backyard for" and delete lines 8-9 and insert: a homeowner's ability to use a backyard clothesline or drying rack. - On page 3 line 11 delete "the use of" - On page 3 line 12 delete "personal energy conservations purposes, including" - On page 3 line 13 delete "or any similar device" and insert: drying rack - On page 3 line 15 delete "engaging" and delete lines 16-18 and insert: using a clothesline or drying rack. - On page 3 line 23 delete "or any similar device" and insert: or drying rack REGISTERED SUPPORT / OPPOSITION: Support The Utility Reform Network (TURN) (sponsor) AB 1448 Page 12 Conference of California Bar Associations Consumer Federation of California Sebastopol Grange # 306 Opposition Apartment Association of Greater Los Angeles Apartment Association of Orange County Apartment Association, Southern California Cities California Apartment Association East Bay Rental Housing Association Educational Community for Homeowners (ECHO) Nor Cal Rental Property Association North Valley Property Owners Association Western Manufactured Housing Communities Association AB 1448 Page 13 Analysis Prepared by:Thomas Clark / JUD. / (916) 319-2334